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Financial Security

This is a very serious topic for all women.

The Budget 2007

       WEL Australia Media release Tuesday 8th May 2007

Give us more services, not just money bribes says national women's organisation.

"Women will not go back to work because of small tax cuts and a slight rise in child care rebates," said WEL spokeswoman Eva Cox. "Funding and finding quality care are essential for mothers of preschool children to take up paid work and this budget does nothing to assist either of these. Thank you for finally paying the 30% tax rebate just after the money is paid out rather than a year later but that is just redressing a previous policy blunder. More affordable care doesn't help if you can't find what you need for your child.  A $5 tax cut doesn't cover the costs of going to work."

The above problems are mirrored in many other areas where money is given rather than funding for services. The Treasurer claims he is fixing education 'by giving money to parents, students and teachers', but not to schools, universities or TAFE.  An auction for top dollar gains for voters through tax cuts, and user-pays subsidies, fails to acknowledge that better education, children's services and skills training require the funding of institutions. But universities, TAFEs and other collective services don't vote, individuals do, so the government offers top dollars to people, not institutions.

Like any marketing measure, it targets consumers, not citizens. The extra funding is plentiful: money to parents for tutoring illiterate children but not for their schools; cash bonuses for teachers who do summer courses or prizes for schools who raise standards but no ongoing funding support; payments that reduce child care costs (slightly) but do nothing about quality costs and distribution of services. Not much is on offer for ongoing funds for any forms of collective delivery of services through schools, universities, community or health facilities.

WEL thought there may have been some programs to support women with children to move into paid work. Tax cuts and training bribes don't create better work life balance or ensure access to quality care services. There is nothing extra for sole parents and others dependent on government payments. There is no money for family time stresses, new child care or other support services. This was the year to fund the long overdue national paid maternity leave scheme but the opportunity has been squandered.  The 'dividend of success' is paid to those individuals who are most likely to count the costs of switching votes.  'Women, as underpaid workers in and users of, community services have nothing to celebrate' said WEL spokeswoman Eva Cox .


Eva Cox - Sydney -  0407535374  or 02 96603028


The Budget 2006: Although the tax cuts were welcomed by many, the disappointing aspect of the budget was the lack of initiatives to assist women. Child care initiatives concentrated on family day care and after school care but ignored the cost and need for more places at child care centres. 

Also ignored was the problem of the double drop identified by Liberal MP Jackie Kelly where parents have to take school children and toddlers to different localities.  Kim Beasley in his reply on the budget has suggested developing child care centres at primary schools. It is interesting to note that this occurs in some Tasmanian schools.

The Budget failed to note the contradiction of policies encouraging women to return to work and the effective increase in the rate of tax on a second income in a family. 

Although there was some money for Mental Health, this included $235m for  infrastructure at medical research facilities and $170m for a Fellowship Scheme.  The desperate need for respite care for carers--usually women--was forgotten. 

Carers will get a bonus of $1000 if they are recipients of the Carer Payment and $600 bonus for those getting a Carer Allowance.

Superannuation changes are still not final as the legislation won't be drafted for some months. However most retirees and pensioners will not benefit from the changes.  It may disadvantage many women in the future as they will not be able to contribute large sums on a yearly basis, throughout their working lives.

Information on Superannuation from Susan Ryan.

WEL National Convenor, Eva Cox, points out that the new welfare-to-work changes will mean that ALL recipients of parenting payments, single and partnered will be asked to look for part time work (15 hours per week) once their youngest child reaches six and lose access to the parenting payment when their child turns eight. 

Partnered parents, the prime constituency of the Howard Government are also at risk. Married low income families are now to be denied the 'choice' of staying at home with primary aged kids, because their husband only has a low income! Poor mothers, single and partnered women are facing savage withdrawal rates, once they earn $32 per week. Both single and partnered mothers will be work tested, ie made to look for jobs or penalised with possible loss of all income for non compliance!    

Impact on single parents is detailed as at August 2005: "Shock awaits single mums on welfare".        NFAW report in October 2005 on sole parents financial situation: "NFAW analysis on sole parents".

 

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